Will crude oil prices remain high in 2022?

In our February 2022 Short-Term Energy Outlook (STEO), we forecast that crude oil prices will remain high enough to drive U.S. crude oil production to record-high levels in 2023, reaching a forecast 12.6 million barrels per day (b/d). We expect new production in the Permian Basin to drive overall U.S. crude oil production growth.

How much will gas cost in 2023?

The agency forecasts gas will average $3.87 a gallon for the final three months of the year, although that’s up from $3.59 previously. For 2023, the EIA upped its forecast for gasoline to an average of $3.66, compared with $3.51 previously. But that would still be a big improvement from the $4.07 price per gallon expected this year.

Why do oil prices need to rise higher this summer?

Here's why High oil and gasoline prices will need to rise even higher this summer to incentivize new production and discourage consumption, according to Goldman Sachs. The Wall Street bank is now forecasting Brent crude oil prices will average $140 a barrel between July and September, up from its prior call of $125 a barrel.

Will gas prices rise again before summer ends?

The price is still below the $3.93 people paid one year ago, but Patrick De Haan, head of petroleum analysis at gas price tracker GasBuddy, sees the potential for prices to rise above that before summer ends. That increase could derail budgets for Labor Day travel and fan inflation again, analysts said.